Canada: Pay Equity Act Aims to Close Gender Gap in the Workforce

The government’s Pay Equity Act and companion Pay Equity Regulations are now in effect. The new act and regulations affirm Canada’s commitment to gender pay equality by requiring companies with 10 or more employees to develop and implement a proactive pay equity plan within the next three years.

A pay equity commissioner is responsible for administering and enforcing the act and regulations to ensure workers in both private and public federally regulated workplaces are receiving equal pay for equal work. The commissioner will work closely with these workplaces to provide support and guidance throughout program implementation.

The proactive pay equity regulations come into effect among other government changes and initiatives that are working to ensure more fair, safe and inclusive workplaces. These initiatives include new pay transparency requirements and a stronger federal framework to protect workers from harassment and violence.

Takeaway: The push for pay transparency and equitable treatment for all workers will likely be accelerated by the Canadian regulation. Companies will need to prepare early for the implications of a more open pay environment, particularly as it may impact costs associated with employees and the extended workforce.

Canada: Pay Equity Act Aims to Close Gender Gap in the Workforce

North America

EMEA

APAC